An announcement on the VAT credit and deduction policy for advanced manufacturing enterprises is hereby made as follows:

I. From January 1, 2023 to From January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to offset their VAT payable by 5% of the current creditable input tax (hereinafter referred to as the additive offset policy).

Advanced manufacturing enterprises as referred to in this announcement refer to the general taxpayers of manufacturing industries among the hi-tech enterprises (including unincorporated branches belonging to them), and the hi-tech enterprises refer to the general taxpayers of manufacturing industries in accordance with the "Ministry of Science and Technology? The Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on the Revision and Issuance of the State Administration of Taxation on the revision and issuance of the Notice on the Administrative Measures for the Determination of High-tech Enterprises" (National Science and Technology Fire [2016] No. 32), the high-tech enterprises recognized in accordance with the provisions of the Ministry of Science and Technology, the Ministry of Finance, the State Administration of Taxation. The specific list of advanced manufacturing enterprises shall be determined by the departments of industry and information technology of each province, autonomous region, municipality directly under the central government, and municipalities separately listed in the plan in conjunction with the departments of science and technology, finance and taxation at the same level.

Two, the advanced manufacturing enterprises in accordance with the current period of 5% of the deductible input tax credits to be accrued in accordance with the current period of the additional credits. According to the current provisions of the input tax not to be deducted from the output tax, shall not be provided for credit; has been provided for credit input tax, according to the provisions of the transfer of input tax, should be in the input tax transferred out of the current period, the corresponding reduction in the amount of credit added.

Third, after calculating the tax payable under the general tax method (hereinafter referred to as tax payable before offsetting) in accordance with the current regulations, advanced manufacturing enterprises will differentiate between the following cases of addition and deduction:

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1. If the taxable amount before offset is equal to zero, the entire amount of creditable additions and deductions for the current period can be carried forward to be offset in the next period;

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2. If the taxable amount before offset is greater than zero and is greater than the amount of the current period's creditable additions and deductions, the full amount of the current period's creditable additions and deductions will be deducted from the taxable amount before offset;

Fourth, the advanced manufacturing enterprises can be accrued but not yet accrued credits and deductions, can be determined to apply the policy of accrued credits and deductions of the period and accrued.

V. Advanced manufacturing enterprises exporting goods and services, and cross-border taxable acts are not applicable to the policy of addition and deduction, and their corresponding input tax credits shall not be accrued.

Advanced manufacturing enterprises exporting goods and services, the occurrence of cross-border taxable behavior and can not be divided into the amount of input tax not to be set aside for the calculation of the credits and reductions, calculated in accordance with the following formula:

Input tax that cannot be set off as additive credit = all input tax that cannot be classified in the current period × sales of exported goods and services and cross-border taxable acts in the current period ÷ all sales in the current period

VI. Advanced manufacturing enterprises shall separately account for the changes in the accruals, credits, reductions and balances of the additions and deductions. Any fraudulent application of the credit policy or false increase in the amount of credits and reductions will be dealt with in accordance with the relevant provisions of the Law of the People's Republic of China on Tax Collection and Administration.

Seven, advanced manufacturing enterprises that are in line with a number of VAT credit and deduction policies at the same time may choose to apply them on a preferential basis, but they may not apply them on a stacked basis during the same period.

This announcement is hereby made.